I agree that Amazon and eBay have significantly different business models and that eBay certainly has the preferable profit model, but Amazon is addressing that by expanding their 3P business, which will allow them to expand margins while maintaining their competitive advantage as an online retailer.

I don’t look at either of these companies from the perspective of the investor. I like the fact that Amazon pushes the envelope and has long-term goals for their business while on the other hand I don’t like that eBay “milks” profits from a supposed mature business and seems to manage their business quarter by quarter.

I believe that eBay should take a longer-term approach to the Marketplace business and get back to growing rather than just managing. Unfortunately this would call for some short-term pain and their margins would be squeezed a little. Recently I’ve seen some signs that eBay’s new management team gets it, but the jury is still out.

I come from the perspective of the online seller so if I seem negative toward eBay it is because I often disagree with the direction they are taking. I think Amazon has issues as well but I like their approach. I can see their vision for the Amazon of the future. I can’t figure out what eBay wants to be “when they grow up”.

I’m an advocate for the online merchant and believe that 3P sellers should have their own website in addition to selling on Amazon and eBay. Call it the “Power of Three” Website, Amazon and eBay. Right now there is too much uncertainty surrounding eBay but hopefully that will change.

whattheheck, with eBay there is a unique emotional attachment that make the analogy fair. Sellers don't have the same relationship with Amazon becasue its always been just business there. For so many years eBay was about family and business.

For those outside of eBay this is difficult to fathom, but very real none-the-less.

Microsoft Should Call Yahoo's Bluff and Refuse to Raise Its Bid [View article]

Oceandude - the difference is in perception. I'm sure Microsoft was prepared to up their offer. I think the $40 a share that Yahoo is suggesting is a little rich. Calling their bluff is just a negotiating ploy. Walk away, watch Yahoo's share price take a dump because there is nobody else out their to save them. The up you over a few bucks a share to help Yahoo save face. All the while $34 a share is what you were willing to pay.

I don't think Mr. Softy would do that but when nobody else stepped to the plate it became an option.

Tillman, yes people do know how much Microsoft wants Yahoo but they still hold all of the leverage. If they push back from the table and say "see ya" what do you think would happen in Yahoo's board room?